Let’s say the product costs $100 to the company and the production capacity is 5000 units. Recession affects the purchasing power of consumerwhich force companies to drop the price of their goods or services. There are many other economic factors examples that affect economies like unemployment, market, land, capital, science, and technology. Examples of economic factors affecting business include: Economic Factors Affecting Anthropologie Economic Factors Affecting The United Kingdom Understanding how Economic factors affect business is essential to making smart decisions and guiding your company to greater heights. a startup company wants to introduce a fresh product into the market and wants to find the right price for its product. For example, the luxury brands perform well during an economic upturn, much more than the companies which produce essential offerings. That's the accepted sign of a healthy economy. This example of Economics is the most basic concepts of free-market economics that help in determining the right price for a good or service. Let’s look at an example. E.g. Different economists pose theories as to the types of inflation. Economic … So, we can see how the above economic factors affect the economy. All of these factors occur outside of the business or investment itself, but they heavily influence the value of the investment in the future. So the company surveyed to measure the demand for the product at different pric… But, the generally accepted types of inflation are demand-pull, cost-push and monetary. Demand-pull inflation is when the demand for products or services rises sharply and surpasses the available supplies of those goods. For the proper functioning of the country, the economy needs to be stable and at a macro level, one can see the effect of that with stable business with competitive earnings. What is the definition of economic factors?Economic factors may include costs such as wages, interest rates, governmental activity, laws, policies, tax rates, and unemployment. These factors can also include any information that has an effect on the current or future value what is being examined. Among all the economic factors, development is the most important one, as a business has to cater to the demands of an economically dynamic society.